All Forum Posts by: Jerry Padilla

@Mel HarsH

As mentioned working with an investor friendly lender will allow you count rental income that is reflected on your tax returns, as well as 75% of lease agreements that are not reflected on your taxes if it is too soon, and 75% of rental income on new purchases. This is how many investors are able to reach 10 properties with conventional.

@Flavio Espinal

Are you looking to purchase residential

2-4 unit properties or commercial 5+?

@Kendrise Colebeooke

In the future, just so you are aware, there are renovation loans for the first 4 financed properties that you have - including subject. Homestyle is one of them - but the property would need to be in your personal name.

@Jason Nguyen

It all depends on if there is enough equity to make it worth cashing out and if it is enough to make a down payment on the next rental. 

A SFR will be an LTV of 75% and a MFR will be an LTV of 70%.

What is the value of the property versus what you owe? 

@Jimmy Thomas

Loan amounts under $50k are usually more difficult to find. $70k shouldn’t be too difficult. 

@Alec Khlebopros

@Alec Khlebopros

@Alec KhleboprosOverall conventional will have the best rates, but as mentioned you are limited to 10 and then would have to go to portfolio lending. You can only get a primary residence rate on your current primary and the expectation is that you live there for a year after the refinance. A second - the same thing, you are expected to live there for some portion of the year. Investment properties, need to be mortgaged as just that an investment property or it is mortgage fraud. 

You can finance multiple conventional mortgages at a time, whether it is cashing out or purchases. I do 3 package, 5 package etc deals for clients frequently. They are all individually financed, but are done at the same time. 

For the 5 properties you own free and clear, you could cash out all 5 at the same time with conventional if you wanted to. A SFR is going to be an LTV of 75% and a MFzr is going to be 70%.

@Jack Sloan

Is the property within conforming limits or above? 

@Ashley Wynn

For the first 4 financed you have, you can use renovation financing. HomeStyle is one of the programs. They include the purchase and renovation with the required down payments.

@Eduardo Villa

Was the property financed initially? With conventional, you can cash out refinance on appraised value if you paid cash for the property based on appraised value, prior to 6 months. You are limited to a cash out max of your initial purchase price plus closing costs, prior to 6 months. 

@Chris DeMorais

A HELOC can be difficult to find for an investment property and the rate will be adjustable.

Rates are low currently, so it would be a good time to consider a refinance. If you are pulling money out with a refinance, you could always pay it off as fast as you would prefer to, just as you intended with a HELOC, at least with conventional. Is this property in your personal name or an LLC? Conventional has the lowest rates, which would give you the ability to put more towards principle versus interest. A duplex, you can cash out up to 70% LTV. You don't have to pull all of that equity out.